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03/25/76 F. J. SILLER & COMPANY v. CITY HART

March 25, 1976

F. J. SILLER & COMPANY
v.
CITY OF HART



Appeal from Oceana, Harold Van Domelen, J.

Leave to appeal applied for.

Danhof, P. J., and D. E. Holbrook and Allen, JJ.

SYLLABUS BY THE COURT

1. Arbitration and Award -- Arbitrator's Power -- Agreement to Arbitrate -- Intent of Parties.

An arbitrator derives his power from the agreement between the parties and the agreement of arbitration is the law of the case; courts will seek to give effect to the intent of the parties as evidenced by the agreement itself.

2. Arbitration and Award -- Agreement to Arbitrate -- Scope of Arbitration.

An agreement to submit to arbitration may limit the scope of arbitration in any way the parties choose.

3. Arbitration and Award -- Bar to Litigation -- Intent of Parties -- Condition Precedent.

A plaintiff is not barred from bringing an action for payment under a contract by a prior adverse decision by an arbitrator where the parties in the arbitration agreement did not clearly evidence the intent that an arbitration award was to be the foundation of a judgment or that the decision of the arbitrator would be binding and conclusive but agreed only that arbitration would be a condition precedent to the filing of an action.

The opinion of the court was delivered by: Danhof

Complaint by F.J. Siller and Company against the City of Hart for payment for work completed under a contract. Accelerated judgment for defendant. Plaintiff appeals.

On June 6, 1975, the plaintiff brought the present action against the defendant city seeking payment for work completed under a contract between the parties. The defendant subsequently moved for an accelerated judgment against the plaintiff, which the trial court granted on July 3, 1975. The plaintiff now appeals of right.

On May 2, 1972, the parties entered a written construction contract. It appears the contract was prepared by the defendant's agents. The portion of the contract ...


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